Discussing the marketing of cadburys dairy milk

‘The consumer demand for ‘something different’ has been increasing over the last decade as foreign travel and other changes in lifestyle have made the British people more adventurous in their food choice. Therefore manufacturers have to respond to these demands by introducing a wide variety of new products to tempt the consumer. This means that a company can not afford to stand still, it must grow to survive in the highly competitive market of confectionary. Successful companies monitor their customer’s needs then move quickly to respond to their demands.

New product development is one way of trying to keep ahead of the market and its competition. ‘ Developing a successful new product that will stand the test of time and gain a permanent place in a company’s portfolio is not easy. Because of the large investment needed for new products it is essential that the whole project is researched carefully. This usually starts of with directly asking their customers what they want. Cadbury From the very early days of Cadbury, new product development has always been an important part of the business, as the company prided itself on the wide range of chocolates included in its portfolio.

Throughout the company’s history, Cadbury have launched some very successful products. The first major success was the launch in 1905 of Cadbury Dairy Milk which made an immediate impact on the market sustained to this day, as the brand value now stands at i?? 76 million per year. New product development is an on-going, never-ending process and at any one time, Cadbury will have a large number of products at different stages of development. Confectionary is half-way between food and fashion so innovation is the key to success, providing excitement and variety for consumers.

I would advise Cadbury to produce a new strawberry flavoured, low fat Cadbury Dairy Milk Bar because my primary research shows that 60% of males and females would buy the new bar. My primary research also shows that a new strawberry favoured bar would also do well as 40% of males and females said they would like Cadbury to produce this flavour out of six different flavours I gave them. Cadburys also have a number of cash cows which are generating a lot of profit so this money could be used to invest in this new product development.

Because the consumer demand for ‘something different’ is high I think a strawberry flavoured, low fat diary milk bar is what the consumers want, so therefore, I think it would stand the test of time and have a permanent place in Cadbury portfolio. would advise that Cadbury main promotion for this new product should be TV advertising. This is because my primary research shows that males and females of all ages would buy the suggested new products and TV advertising enables you to reach a large, widely distributed audience at a relatively low price.

I also think that sales promotion would be affective because free samples of the new product would make people aware and if they liked it they would buy it in the future. Sponsorship would be another good way of making people aware of the new product because if you sponsor a very well known programme that a lot of people watch then all those people will be aware of your product. Cadbury has a lot of cash cows that are generating enough money to support whatever promotion they think would be most effective. Advertising Standards

The British Code of Advertising Practice set out the rules which advertisers agree to follow and ensure that any advertisements are truthful and can be trusted. All advertisements should be legal, decent, honest and truthful. Legality of Advertisements All adverts must not contain anything that is in breach of the law, must not omit anything which the law requires or encourage defiance of the law. Decency Anything which is against the standards of decency of correct conduct or likely to cause widespread offence must not be included in an advert.

Honesty The customers trust or exploitation of their lack of experience should not be abused in the frame of the advert. Truthful Representation The contents of the advert must not contain visual presentations or statements which are likely to cause customers to be mislead with regard to the product in the advert wither directly or by implication by failing to omit certain information, adverts having more than one meaning or by exaggeration. Prices

Generally prices do not have to be shown in your advert but in the case of goods and they must be in a clear position so that they cannot be missed, also the price of any extra none-optional extras must also be shown. The use of the word free This may only be used in the advert if there is no additional cost to the customer excluding any payments on the delivery i. e. postage, packaging, transport. Where there is a direct cost to the customer, it must be stated clearly. Advertisement Indication

Persons viewing an advert should be able to tell that it is an advert without having to look closely at the information given. Warranties and guaranties should be indicated clearly and carefully in the advert to avoid any confusion by the customers. Any advert must be prepared with a sense of responsibility to society and to the customer. Fear Adverts should not play on fear without a justified reason. Superstition Superstition must not be used in adverts by suggesting that by buying the product you will have good fortune for example.

4. Place – Distribution Place is trying to get the right level of distribution in the right types of outlets. This is one of the most difficult, yet important marketing activities. In simple terms physical distribution involves getting a product from A to B. Logistics has a very important role to play in the process of distribution. This is because they start off the process and plan it from beginning to end. If they don’t do their job probably then they could end up with no sweets in the shops, which loses sales and therefore profit.

Logistics monitor demand for goods and co-ordinate the process from ordering raw materials through to the timely delivery to the warehouse. Physical distribution must balance the need for customer service against the need to minimise costs. It is necessary to plan a physical distribution system carefully taking into account the need for warehouse space, stock, staff etc in order to maximise efficiency. On the other hand it is necessary to keep down costs and get the correct balance between these inputs and outputs and therefore provide an efficient but profitable service.

Cadbury This is the distribution channel that I would advise Cadbury to use: This is the distribution channel that Cadbury already uses, so I think they should also use it for the new product. I think this because it is already set up and working well for their other products and is already in a good area, with experienced staff and known by their existing suppliers. They would need to incorporate this new product into their existing set-up, therefore keeping costs down as their will be no initial start up expense.

Because it is already an up and running distribution channel the experienced staff should be able to get it up and running quickly, efficiently and cost effectively. If the product becomes a big success then they might have to build an extension to their already existing warehouse, but if this is necessary it should finance itself. The only slight disadvantage to this type of distribution channel would be that the distribution centre is a middle stage and extra staff would be needed but I think that this is necessary in a large company.